DAILY MARKET REPORT -Thursday, Jan 21, 2021

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Democrat Joe Biden was sworn in as the 46th president of the United States on Wednesday. In his inauguration speech, Biden emphasized the importance of national unity, public service, and racial equity.

EQUITIES

Wall Street ended at a record high on Wednesday on hopes of further fiscal stimulus measures under the Biden administration. Netflix shares rose 17% and climbed to a new record high on Wednesday after strong Q4 financial results. On the earnings front, IBM (NYSE: IBM) and Intel (NASDAQ: INTC) scheduled to report financial results today after the market close.

OIL

Crude oil prices trading lower on Thursday after weaker-than-expect API inventory data. The data showed the US oil inventories increased by 2.6 million barrels in the week to January 15th.

CURRENCIES

In the currency market, the Canadian dollar surged to fresh 2-year high on Wednesday following the positive comments from Bank of Canada. On the other hand, the EURO trading steady above 1.2140 ahead of European Central Bank interest rate decision and press conference by President Lagarde.

GOLD

The gold price jumped to a fresh weekly high of $1874 on Thursday supported by the weaker dollar and the rise in coronavirus cases in the US and other countries.

Economic Outlook

On the data front, the Bank of Canada elected to keep its benchmark interest rate steady at 0.25 per cent on Wednesday. Bank governor Tiff Macklem has said the key rate won't move from near-zero until inflation is back at the bank's two-per-cent target.

Bank of Japan left its monetary policy unchanged on Thursday. "Our projections could change depending on developments regarding the pandemic and how they affect domestic and overseas economies. Uncertainty is therefore extremely high," the BOJ said.

Moving ahead today, the important events to watch:

Eurozone – ECB interest rate decision: GMT – 12.45

US – Jobless claims: GMT – 13.30

US – Building permits: GMT – 13.30

Coronavirus update:

Worldwide, the number of COVID-19 cases reported is more than 96.3 million. The United States has reported 24.2 million confirmed cases and has had more than 402,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

AUD/USD:
The currency pair spiked after the Australia unemployment rate unexpectedly dropped to an eight-month low of 6.6% in December. While considering the recent bullish move the pair will face strong resistance at 0.7800/0.7830.

audusd


The important levels to watch for today: Support- 0.7720 and 0.7680 Resistance- 0.7780 and 0.7820.

GOLD: The yellow metal slightly retreated from the daily tops. At the time of writing, the gold price trades below $1870.

gold neww


The important levels to watch for today: Support- 1864 and 1856 Resistance- 1875 and 1884.



Quote of the day: I’m always thinking about losing money as opposed to making money. Don’t focus on making money, focus on protecting what you have – Paul Tudor Jones

Read more- https://gulfbrokers.com/en/daily-market-report-243
 
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